[Breaking News] Trump Extends Executive Order on Reciprocal Tariff Deferral Until August 1

Government: "Tariffs deferred until August 1... accelerating negotiations"

Donald Trump, President of the United States, has extended the effective date for reciprocal tariffs that were to be imposed on major trading partners, including South Korea, from the originally scheduled July 9 to August 1.

The White House announced on the 7th (local time) that President Trump had signed an executive order extending the reciprocal tariff deferral period to August 1. Initially, President Trump had declared that all trade negotiations would be concluded by the 9th, but as little progress had been made, it seems he intended to secure additional time.

Nevertheless, President Trump sent open letters directly to leaders of counterpart countries such as South Korea and Japan, firmly warning that if trade barriers were not lifted, reciprocal tariffs would be imposed as originally planned. On this day, President Trump sent a letter addressed to President Lee Jae-myung, unilaterally notifying that from August 1, all products exported from South Korea to the United States would be subject to a 25% reciprocal tariff.

In the letter designating President Lee as the recipient, President Trump stated, "The United States is seeing a serious trade deficit against your great nation. Even so, we have chosen to make progress with you," and added, "However, we need more balanced and fair trade. We have had years to discuss our mutual trade relationship, and have concluded that we must address the ongoing trade deficit caused by South Korea's tariff and non-tariff barriers."

President Trump emphasized, "Unfortunately, our relationship has not been reciprocal at all. From August, a 25% tariff will be imposed on South Korean products; this is separate from itemized tariffs," and he continued, "If goods shipped in a roundabout way to avoid higher tariffs are discovered, the higher of the two tariff rates will apply. Please note that the 25% rate is actually much lower than what is needed to resolve the trade imbalance."

He concluded, "As you know, should South Korea or its companies manufacture or produce within the United States, no tariffs will be imposed. However, if for any reason retaliatory tariffs are imposed against us, an additional tariff equal to 25% will also be imposed." He further stated, "If trade barriers such as tariffs and non-tariff barriers are eliminated, the content of this letter will also change. The specified tariff rate may be lowered or raised depending on the bilateral relationship."

As President Trump has indicated a willingness to lower reciprocal tariffs through ongoing trade negotiations with South Korea, the South Korean government has decided to speed up negotiations to reach a mutually beneficial agreement with the United States. The Ministry of Trade, Industry and Energy stated, "With this letter, we consider that the reciprocal tariff deferral is effectively extended until August 1. To swiftly resolve uncertainties caused by tariffs, we will accelerate negotiations to reach a mutually beneficial outcome during the remaining period."

Reporter: Minsung Hong, Hankyung.com mshong@hankyung.com